4 Ways to Improve Your Supplier Relationship Management
SRM, or Supplier relationship management, is the strategy an organization uses when establishing and maintaining business relations with suppliers, vendors, manufacturers, wholesalers and distributors on a domestic and on an international level. Building a strong supplier network is a long and continuous process which involves a lot of research, planning and ongoing relationship management.
If you have already gone through the selection phase and have chosen your suppliers, here’s what you can do to make sure your partnerships will run smoothly:
- Prepare detailed agreements
All of your contracts must clearly set the conditions under which the company will provide its products or services to your organization. Every contract must have an explicit description of the deliverables, specified delivery schedules, pricing, terms of payment and force majeure clauses.
- Be punctual with all payments
Settle all invoices and clear any outstanding amounts on time. If you have suppliers based in other EU countries, the easiest way to wire the payments is through the SEPA Instant transfer service, where the money is credited to the payee’s account instantly. This will eliminate any unwanted delays and will prove you to be a reliable and easy-to-work-with partner.
- Create a supplier management plan
Add all your suppliers to a matrix together with the deliverables, the timeframes and the deadlines. Implement a reporting policy to receive accurate and updated information, so you can easily monitor all vendor relations processes.
- Communicate frequently and effectively
Communication is the key in business relationships. Having a dedicated employee or a whole team to keep in touch with your suppliers is of prime importance not only in critical situations, but also to continuously develop and improve your relations and build trust and loyalty.
Managing the supplier network well has a great impact on the success of every organization. That is why it’s essential to have an effective strategy and to implement all necessary procedures so you can develop long-term partnerships.